[Congressional Record (Bound Edition), Volume 153 (2007), Part 18]
[Extensions of Remarks]
[Pages 25543-25544]
[From the U.S. Government Publishing Office, www.gpo.gov]




  EXPRESSING CONCERN ABOUT ADMINISTRATION'S SEPTEMBER 9, 2007 OIL DEAL

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                      Tuesday, September 25, 2007

  Mr. KUCINICH. Madam Speaker, I rise today to express deep concern 
about the administration's involvement in an oil deal announced on 
September 9, 2007, between the U.S. company Hunt Oil and the Kurdistan 
Regional Government. This oil deal appears to benefit a large 
Republican donor and ally of President Bush and Vice President Cheney.
  The recent oil deal between the U.S.-based Hunt Oil Company and the 
Kurdistan Regional Government raises numerous questions. Hunt Oil, a 
privately held oil company based in Texas, and its founder, Ray Hunt, 
have close ties to Vice President Cheney and are large donors to 
President Bush. The deal appears to undercut the goal of oil revenue 
sharing but is predictably consistent with the administration's attempt 
to privatize Iraqi oil assets.
  This war is about oil. The Bush administration desires private 
control of Iraqi oil, but we have no right to force Iraq to give up 
their oil. We have no right to set preconditions for Iraq which lead 
Iraq to giving up control of their oil. The constitution of Iraq 
designates that the oil of Iraq is the property of all Iraqi people.
  The Administration has misled Congress and the media into thinking 
that pending Iraqi oil legislation before Iraq's Parliament was about 
the fair distribution of oil revenue. But the Hunt Oil deal with 
Kurdistan exposes the real intent of that legislation, promotion of a 
privatization scheme.
  The Hunt Oil deal with Kurdistan suggests the war has made foreign 
access to Iraqi oil a reality. Because the connections between Hunt Oil 
Company and the Bush administration are numerous, I have asked the 
Committee on Oversight and Government Reform to investigate Hunt Oil's 
ties to the Bush Administration and Halliburton.
  The contract between Hunt Oil and Kurdistan would be the first of its 
kind in the Middle East where oil has been nationalized for decades and 
foreign oil companies have had no presence. The lack of consensus on 
how to manage the Iraqi oil resources suggests that the Hunt Oil 
Company deal could lead to greater instability within Iraq.
  I have sent a letter to Secretary of State Condoleezza Rice urging an 
immediate investigation into the implications of the Hunt Oil Company's 
recent production sharing agreement for petroleum exploration with 
Kurdistan on U.S. and Iraqi national security.
  Congress should put a stop to the outrageous exploitation of a nation 
already in shambles due to U.S. intervention. I will soon introduce 
legislation to prevent all U.S. companies from gaining financial 
interests in Iraq's oil resources. I hope my colleagues will join me to 
ensure that the people of Iraq are not made to endure greater suffering 
and injustice that has already occurred because of this illegal and 
unjust war.

                                    Congress of the United States,


                                     House of representatives,

                                               September 18, 2007.
     Hon. Condoleezza Rice,
     Secretary of State, Department of State, Washington, DC.
       Dear Secretary Rice: To assure the national security of the 
     U.S. and Iraq I urge an immediate investigation into Hunt Oil 
     Company's recent production sharing agreement for petroleum 
     exploration with Kurdistan. The Iraq Central Government 
     reportedly considers this agreement illegitimate. As such, a 
     thorough investigation assessing the threat posed by the 
     agreement to U.S. and Iraqi national security interests 
     should be conducted promptly.
       The Constitution of Iraq designates that the oil of Iraq is 
     the property of all Iraqi people. Thus, it is unsurprising 
     that the Iraqi Central Government believes that the oil 
     production sharing agreement between Hunt Oil Company and the 
     Kurdistan Regional Government (KRG) is illegal. The agreement 
     is reportedly based on oil law passed by the KRG and is the 
     subject of much legal debate. The lack of consensus on how to 
     manage the Iraqi oil resources suggest that the Hunt Oil 
     Company deal could lead to greater instability within Iraq.
       As you are undoubtedly aware, the contract between Hunt Oil 
     and the KRG would be the first of its kind in the Middle East 
     where oil has been nationalized for decades. Foreign oil 
     companies have had no presence in the Middle East for 
     decades. The legality of this matter is of obvious importance 
     to the people of Iraq who have a constitutional right to the 
     oil resources of Iraq.
       Furthermore, close ties between Hunt Oil Company and the 
     Administration's top officials coupled with this precedent 
     setting agreement appears morally debased. The following will 
     assist in clarifying this connection: Ray Hunt, CEO of Hunt 
     Oil Company, was twice appointed to a seat on the President's 
     Foreign Intelligence Advisory Board (PFIAB). Mr. Hunt raised 
     campaign funds for President George H.W. and George W. Bush. 
     He also personally donated $20,000 to the Republican National 
     Committee's Victory Fund for the current President Bush. Ray 
     Hunt gave $100,000 toward the 2001 Bush inaugural festivities 
     and one of his corporations, Hunt Consolidated, gave another 
     $250,000 toward the Bush 2005 presidential inaugural gala. In 
     addition, Ray Hunt donated $35 million toward the Bush 
     library/think tank to secure additional property for the 
     project.
       This unmatched deal struck by the Hunt Oil Company coupled 
     with the company's ties to the administration could be viewed 
     as hostile to the interests of Iraq amidst growing knowledge 
     of Iraqi opposition to privatization and sale of Iraq's 
     national oil reserves.
       Your investigation should address how the agreement will 
     affect Iraqi public sentiment toward the Iraqi and U.S. 
     governments, insurgent efforts, the stability of Iraq and the 
     stated goals of U.S. policy to bring peace and stability to 
     the region.
       I look forward to your timely response and the conclusions 
     of your investigation.
           Sincerely,
                                               Dennis J. Kucinich,
     Member of Congress.
                                  ____

                                    Congress of the United States,


                                     House of Representatives,

                                               September 18, 2007.
     Chairman Henry A. Waxman,
     Committee on Oversight and Government Reform, House of 
         Representatives, Washington, DC.
       Dear Chairman Waxman: I request that the Full Committee 
     begin an investigation into the recently announced oil 
     production sharing agreement between the Hunt Oil Company and 
     the Kurdistan Regional Government (KRG). The recently 
     announced agreement raises numerous concerns.
       (I) Was the U.S. company Hunt Oil and its CEO, Ray Hunt, in 
     entering into the agreement with the KRG, the beneficiary of 
     a special relationship with the Bush administration? Have 
     reported ties between Ray Hunt and the Bush administration 
     led to special advocacy for Hunt Oil by the administration 
     that resulted in the production sharing agreement with the 
     KRG?
       In 2002, Mr. Hunt acted as the finance chairman of the 
     Republican National Committee for President Bush. Mr. Hunt 
     led the Republican National Committee's Victory Fund for 
     George W. Bush and personally donated $20,000 to the 
     committee. Mr. Hunt contributed $100,000 toward inaugural 
     festivities for President Bush in 2001, while Hunt 
     Consolidated contributed $250,000 toward the 2005 Bush 
     presidential inaugural gala. Mr. Hunt has also given 
     generously toward construction of the Bush library by 
     securing $35 million dollars in additional property for the 
     endeavor.
       Furthermore, Mr. Hunt has twice been appointed to a seat on 
     the President's Foreign Intelligence Advisory Board (PFIAB); 
     most recently in 2006. The PFIAB is said to have access to 
     intelligence information that is not available to a majority 
     of the members of Congress. There are experts who acknowledge 
     that information accessible to Mr. Hunt through the PFIAB is 
     advantageous to the international energy interest of the Hunt 
     Oil Company.
       It is also notable that Vice President Cheney, as the head 
     of Halliburton, invited Mr. Ray Hunt to sit on the 
     Halliburton Board of Directors.
       (II) Was Kurdistan pressured into promulgating a new oil 
     law and/or entering into production sharing agreement with 
     Hunt Oil and perhaps other administration connected companies 
     by elements of the U.S. government in Iraq?
       It should be of great concern to all those who wish to see 
     Iraq achieve self-sufficiency that the Iraqi Central 
     Government is opposed to the agreement entered into by the 
     Hunt Oil Company and the KRG. Iraq's oil minister, Hussain 
     al-Shahristani, has said ``any oil deal has no standing as 
     far as the government of Iraq is concerned. All these 
     contracts have to be approved by the Federal Authority before 
     they are legal. This (contract) was not presented for 
     approval. It has no standing.''
       (III) Does the Hunt Oil Company's deal with the KRG 
     foretell of more such agreements in the future? If the KRG 
     does plan to announce more production sharing agreements in 
     the future what would be the consequences for any revenue 
     sharing programs initiated by the Iraqi Central Government?
       On numerous occasions President Bush has stated his support 
     for a revenue sharing program in Iraq. On May 31, 2007, at a 
     White House press conference President Bush stated, ``We're 
     working very hard, for example, on getting an oil law with an 
     oil revenue-sharing code that will help unite the country.'' 
     On August 9, 2007, at another White

[[Page 25544]]

     House press briefing, Mr. Bush stated, ``People say we need 
     an oil revenue sharing law. I agree with that, that needs to 
     be codified.''
       While many have pointed out that the oil law that President 
     Bush has supported is primarily a privatization bill, 
     nevertheless is not the announcement between Hunt Oil and the 
     KRG undermining the alleged purpose of the Iraqi oil law? Is 
     this not at odds with President Bush's stated goal of revenue 
     sharing? Supposedly the U.S. is in favor of an Iraqi oil 
     revenue sharing program, but will the Hunt Oil agreement with 
     the KRG contribute to or undermine a revenue sharing program 
     in Iraq?
       It is hard to imagine that in Iraq there is any matter more 
     controversial than oil. So long as the U.S. occupies Iraq, it 
     is hard to imagine that there can be anything more damaging 
     to the United States' world reputation than the awarding of 
     oil agreements to Bush administration cronies.
       In light of the Full Committee's excellent past work on 
     Halliburton, I strongly recommend that the Full Committee 
     ascertain the relationships between the Hunt Oil Company, the 
     Bush administration and the KRG that resulted in the 
     September 9, 2007 announcement of the oil production sharing 
     agreement.
           Sincerely,
                                               Dennis J. Kucinich,
     Member of Congress.

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